Barnwell Industries (BRN) investor relations material

Executive summary

• Q3 continuing-operations loss attributable to shareholders narrowed to $440,000 from $1.55 million YoY; nine-month loss improved to $3.016 million from $4.674 million.

• Higher realized prices, lower costs and depletion, affiliate earnings and lower overhead supported results; lower production constrained revenue. Sequentially, production and pricing improved, and Adjusted EBITDA turned positive.

• Management is focused on maximizing existing asset value, pursuing production growth where returns justify modest capital, and evaluating strategic opportunities inside and outside energy.

Financial highlights

• Q3 revenue was $3.379 million vs. $3.192 million YoY and $2.535 million in Q2; nine-month revenue was $8.660 million vs. $10.695 million.

• Q3 shareholder-attributable loss was $440,000, or $0.03/share, vs. $1.550 million, or $0.15/share, YoY; nine-month loss was $3.016 million, or $0.24/share, vs. $4.674 million, or $0.47/share.

• Q3 consolidated net loss was $403,000 vs. $1.116 million in Q2; Adjusted EBITDA was positive $425,000 vs. negative $369,000 in Q2.

• Nine-month operating cash use was $3.099 million; investing activities provided $354,000 and financing activities provided $4.346 million.

Outlook and guidance

• A July 31 agreement covers the sale of substantially all remaining Hawai'i real-estate interests for $1.77 million gross cash; closing was expected by September 15, subject to customary conditions.

• Estimated net sale consideration is $1.55 million; closing is not assured, and completion would enable an exit from known remaining Hawai'i interests.

• Priorities include assessing Canadian oil and gas strategic alternatives, including a potential sale, and evaluating M&A opportunities; no specific transaction outcome is assured.

• Results through June 30 are not necessarily indicative of full-year results; going-concern statements contemplate normal asset realization and liability settlement over the 12 months following issuance.